Cheaper thali = Farm emergency? The government is trying to prevent this.

Copyright © HT Digital Streams Limited All rights reserved. Here’s how the government is trying to prevent a cheaper thali from turning into farmers’ distress Low inflation helps consumers, but it could adversely affect rural incomes if farmers are forced to sell below the benchmark procurement price. Summary Low food prices are good for the consumer, but not so much for the farmer. Market prices of farm produce remain below minimum support prices in many states, and the government wants to prevent panic selling during the upcoming procurement season. The Center is working on a contingency plan to prevent distress sales during the ongoing procurement season, at a time when crop prices have fallen below the minimum support price (MSP) in many states. Officials from the agriculture ministry, food and public distribution department and Niti Aayog are discussing the low prices of oilseeds, onions, wheat, rice and pulses that have kept retail inflation below 2%, two people aware of the matter said. The officials discussed increasing purchases to protect farmers’ income, the people said, following the sharp decline in prices of pulses and oilseeds this year, following a sharp rise in FY24. “The drop in prices of essential commodities below MSP is a cause for concern for the government. We are discussing the issue with the relevant departments to work out a plan to ensure that farmers are not affected by the pricing emergency,” said one of the two people mentioned above. Double-edged sword While low inflation benefits consumers, it can adversely affect rural incomes if farmers are forced to sell below the benchmark procurement price. The development assumes significance as around 42% of India’s population depends on agriculture for livelihood, with the sector accounting for 18% of India’s GDP. “In addition to assured procurement at the MSP, the plan is expected to include supportive measures such as facilitating the export of farmers’ produce to international markets and covering part of the losses resulting from the current price drop,” the second person said, adding that the plan is in discussion stage. All-India mandi prices of most oilseeds and pulses are currently below their MSP. On October 23, the average wholesale price of soybeans stood at ₹3,932 per quintal, well below its 2025-26 MSP of ₹5,328 per quintal. Groundnut traded at ₹5,693 per quintal against an MSP of ₹7,263, while sunflower was priced at ₹5,697 per quintal compared to an MSP of ₹7,721. Among pulses, moong was sold at ₹8,259 per quintal, slightly below its MSP of ₹8,768, while tur traded at ₹6,579 per quintal, significantly below its MSP of ₹8,000. The turnaround is notable as pulses saw a sharp price rise in 2023-24, prompting the government to introduce various measures to cool prices and curb hoarding. As per the market trend, cotton prices fell to ₹5,500–7,200 per quintal compared to the MSP of ₹7,710 (medium staple) and ₹8,110 (long staple); urad is being sold at ₹6,069 below its MSPs of ₹7,800/quintal. Also, rice prices in various states are hovering around ₹ 1,800–2,000 per quintal, below the MSP of ₹ 2,300 per quintal, according to the reports. Queries emailed to the ministries of agriculture, consumer affairs and Niti Aayog remained unanswered. “Since most of the pulses and oilseeds are trading well below the MSP, the government should step in and ensure that the farmers get the required MSP as this will not only protect their income but also ensure food security,” says Devender Sharma, a food and agriculture policy analyst. Measures “Since our agriculture is completely dependent on the monsoon, the government should consider revising its import policy at least every six months. There should not be a blanket allowance for the import of pulses as it causes the prices of all major varieties including tur, masoor and chana to crash,” said Ramesh Chandra Lahoti, former president of the Karna-CFK Trade Federation (CFK Federation) said. “African tur is sold at about half the rate of Indian tur; so how can our own crop, which has an MSP of ₹80 per kg, compete? These are the main concerns the government needs to address to protect farmers’ interests,” Lahoti said. India’s retail inflation has remained well below the central bank’s comfort level of 2-6% for five consecutive months, reflecting subdued price pressures across key food and fuel categories. Consumer Price Index (CPI) inflation decreased from 2.82% in May 2025 to 2.10% in June, and further moderated to 1.55% in July. It rose slightly to 2.07% in August before falling again to 1.54% in September, according to official data. The continued moderation was largely supported by stable prices of cereals, pulses and edible oils. Key Takeaways Center plans to prevent farm distress sales as crop prices fall below MSP. Low retail inflation benefits consumers, but significantly harms essential rural farm incomes and livelihoods. Plan includes higher procurement, export facilitation and compensation of farmers for current price drop losses. Most oilseeds and pulses trade well below their MSP, violating price benchmarks. The review of pulse import policies is critical because current subsidies are causing domestic crop prices to collapse. Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News app to get daily market updates. more topics #farmers income Read Next Story